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Council seeks explicit transfer language for consultant work if Lumberyard deal fails
Summary
Councilors pressed staff to ensure the city obtains consultant drawings and test results if the Lumberyard development with Gorman and Company terminates before closing; staff said the contract requires transfer of work product on termination and invoices are required for reimbursement requests, and that subcontracts are subject to city review.
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A council member raised a repeated concern at the July 14 special meeting that the city explicitly secure licenses or assignments for consultant drawings and other work products should the Lumberyard deal with Gorman and Company terminate before closing. "I do think that's how it would be done as we move forward... that in the event of termination, the work product will be transferred to the city of Aspen," said the council member.
City staff said the agreement contains language transferring work products to the city on termination and that the developer must submit invoices and backup for reimbursable expenses. Chris Everson added that the city has rights to review subcontracts and require supporting documentation before reimbursements are approved.
The exchange followed staff's explanation that the cap covers predevelopment expenses the developer may seek to recover during due diligence, and that the city would inherit survey and soils testing deliverables if the parties did not proceed to closing.
